Nisun(NISN) - 2022 Q4 - Annual Report

Foreign Exchange Risk - The company is exposed to foreign exchange risk as all consolidated sales and expenses are denominated in RMB, with a depreciation of approximately 2% in RMB against the U.S. dollar in 2022 [630]. - The company has not entered into any hedging transactions to mitigate foreign exchange risk [629]. Financial Position - As of December 31, 2022, the company had cash and cash equivalents totaling $35,911,261, primarily deposited in high credit quality financial institutions in China [633]. - The company believes that the risk of failure of the Chinese banks holding its cash is remote, as bank failures are uncommon in China [633]. - The company has no borrowings with variable rates and no long-term interest-bearing assets or liabilities as of December 31, 2022 [631]. Internal Control and Reporting - The company identified material weaknesses in internal control over financial reporting, including inadequate accounting personnel knowledgeable in U.S. GAAP and SEC reporting standards [641]. - The company did not file its annual report on Form 20-F for the year ended December 31, 2022, by the deadline due to the inability to finalize financial statements [642]. - Management is implementing remediation activities, including establishing a financial reporting team and enhancing training for accounting personnel on U.S. GAAP [644]. - Management's internal control remediation efforts are ongoing, but there is no assurance that all measures will be sufficient to address the identified weaknesses in a timely manner [645]. Inflation Impact - Inflationary factors may adversely affect operating results, although the company does not believe inflation has materially impacted its financial position to date [635].